Income Tax (Amendment) Act, 2015

2. Section two of the principal Act is amended by the deletion, in subsection (1), of the definitions of “mining operations” and “mineral processing” and the substitution therefor of the following: Amendment of section 2 “ mining operations ” means an operation carried out under a mining right, excluding an operation carried out under a mineral processing licence only or an exploration licence; “ mineral processing ” has the meaning assigned to it in the Mines and Minerals Development Act, 2015.

3. The principal Act is amended by the insertion, immediately after section twenty-two, of the following new section:

22A. The Commissioner-General may, for the purposes of determining assessable income relating to mineral processing and mining operations for the charge year 2015, determine the appropriate apportionment basis. Act No. 11 of 2015 Insertion of section 22A Assessable income

4. The principal Act is amended by the deletion of section thirty and the substitution therefor of the following: Repeal and replacement of section 30 Single copies of this Act may be obtained from the Government Printer P.O. Box 30136, 10101 Lusaka. Price K4.00 144 No. 6 of 2015] The Income Tax (Amendment) Losses

30. (1) A loss incurred by a person in a charge year from — (a) a source other than a mining operation, shall be deducted from that person’s income from the same source on which the loss was incurred; and (b) a mining operation, shall be deducted from fifty percent of the income of the person from the mining operation. (2) Where a loss referred to in — (a) paragraph (a) of subsection (1) exceeds the income of a person for a charge year, the excess shall, as far as possible, be deducted from that person’s income from the same source on which the loss was incurred in the following charge year; and (b) paragraph (b) of subsection (1) exceeds fifty percent of the income from a mining operation for a charge year, the excess shall, as far as possible, be deducted from fifty percent of that person’s income from the mining operation in the following charge year. (3) Subject to subsection (1) and (2), a loss incurred by a person — (a) carrying on a mining operation or hydro and thermo power generation, shall not be carried forward beyond ten subsequent charge years after the charge year in which the loss is incurred; and (b) in any other case shall not be carried forward beyond five subsequent years after the charge year in which the loss was incurred. (4) Losses brought forward as at 31st March, 1997, shall be deemed to have been incurred in the charge year ending 31st March, 1997. (5) Where on the death of an individual, interest in a business passes to that individual’s spouse, any undeducted loss attributable to that interest shall be deducted from the spouse’s income from that business in accordance with subsection (2). The Income Tax (Amendment) [No. 6 of 2015 145

5. The Charging Schedule to the principal Act is amended by the deletion of subparagraphs (e), (f) and (g) of paragraph 3 and the substitution therefor of the following: Amendment to Charging Schedule (e) on income from mineral processing, at the rate of thirty- five percent; (f) where the income from a mining operation does not exceed eight percent of the gross sales, at the rate of thirty percent; and (g) where the income from a mining operation exceeds eight percent of the gross sales, at the rate determined in accordance with the following formula: Y=30% + [a – (ab/c)] Where – Y= the tax rate to be applied per annum; a= 15% b= 8%; and c= the percentage ratio of the assessable income to gross sales 146